Standard, Faring to Convert Rent at Another New Apartment Development
By Greg Cornfield January 27, 2022 8:45 pm
reprints
Standard Communities and Faring have partnered for their fifth big rent conversion project in Los Angeles.
The two firms led a public-private partnership to acquire the new 230-unit Millennium South Bay Apartments in Hawthorne, a small city next to El Segundo and Los Angeles International Airport. Records show The Dinerstein Companies sold the development for $140 million.
Standard and Faring acquired the property with CSCDA Community Improvement Authority and the City of Hawthorne using tax-exempt bond financing. As such, the developers will immediately lower rents for new residents with incomes between 80 percent and 120 percent of the area median income.
“This public-private partnership to create workforce housing will ensure that middle-income families and essential workers can afford to live in a high-quality transit-oriented and mixed-use property, close to their work and many neighborhood amenities,” Standard’s Chris Cruz said. “Two-thirds of the units are reserved to those making below $82,000 a year, with one-third reserved for those making at or below $66,000 a year.”
The five-story building was completed in 2021 on 2.5 acres at 12530 Crenshaw Boulevard in Hawthorne. It includes a mix of studio, one- and two-bedroom apartments, as well as pool, fitness center, coworking space and resident lounge and bar.
“The average single-family home in Hawthorne costs over $900,000, but the average salary for teachers, firefighters, police officers and other essential workers is below $70,000,” said Jeff Jaeger, co-founder of Standard Communities. “Creating this transit-oriented and mixed-use community for middle-income essential workers will have a huge benefit for the City of Hawthorne.”
In August 2021, Standard Communities and Faring announced a joint venture to create over $2 billion of “missing-middle” housing throughout California through both ground-up development and the acquisition and conversion of existing market-rate properties. After five acquisitions they now manage more than 1,200 units together.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
